The purchase and sale of housing by expats in Spain has registered record figures for the second consecutive year, surpassing 65,500 transactions (a growth of 7.6% year-on-year), according to a report by the College of Property Registrars (Colegio de Registradores de la Propiedad). The weight of property purchases by non-Spaniards in Spain made up 12.6% of total sales in 2018 with 516,680 transactions, the highest figure in the last 10 years, while the price of housing increased by 8.2%.
The last quarter of 2018 saw the lowest sale statistics of the year, according to the Real Estate Registry Statistics report. Even so, more than 516,000 housing transactions were closed, with a year-on-year rise of 11.3% and the highest figure recorded in a decade. In terms of house prices in Spain, property prices increased by 8.2% compared with 2017.
Between October and December, home sales were at around 121,000 properties, a decline of 9.8% over the third quarter, but a year-on-year increase of 7.4%, with sales of used housing being more common than those of new homes.
According to the Registrars, foreign buyers also increased their operations in Spain during the year just gone. Interannual figures grew for the ninth consecutive year, and for the second year in a row set historic sales records. While the barrier of 60,000 transactions was already surpassed in 2017, in 2018 they increased to 65,500, 7.6% more.
These data show that 12.6% of total sales were made by foreign citizens. Despite the increase in the total number of operations, the weight of operations by expats was less than in previous years. In fact, it is the lowest percentage since 2013.
By nationality, the British continue to head up foreign demand for real estate in Spain, making up 15.3% of purchases by international buyers in Spain. After Brits come the Germans (7.4%), French (7.4%), Belgians (6.3%), Swedes (5.9%), Romanians (5.5%) and Italians (5.4%).
Despite the uncertainty generated by the lack of agreement between the United Kingdom and the EU to reach a Brexit deal before the end of March, Brits have once again increased the number of homes they buy in Spain and exceeded, by a small margin, 10,000 transactions.
"With regard to 2018, on the one hand, the increase in British demand stands out, surpassing the figures for 2017. However, most other nationalities in the leading group have presented lower amounts of home purchases in 2018 than in 2017," noted the registrars.
By areas, the east coast of Spain and the islands are still the most popular destinations for expats, thanks to the plentiful sunshine and beach tourism. "Demand by foreigners for touristic purposes predominates, especially from European nationalities with high per capita incomes. As the economic recovery progresses, represented by a growth in GDP and employment, the nationalities that are in Spain for primarily labour purposes, are increasing weight in foreign demand," they specify.
The province of Alicante is still the place with the highest weight of housing purchases by foreign citizens, maintaining levels above 40% for years, specifically 41.28% in the fourth quarter of 2018. After Alicante come the provinces of Santa Cruz de Tenerife (34.5%) and the Balearic Islands with 34%. The provinces of Malaga (29%), Girona (25%) and Murcia (22.7%) all have levels of purchases by expats above 20%.